Why this small-cap money manager is buying BlackBerry and Quarterhill

THE MOVER Why this small-cap money manager is buying BlackBerry and Quarterhill BRENDA BOUW SPECIAL TO THE GLOBE AND MAIL PUBLISHED 1 HOUR AGO Open this photo in gallery: Anil Tahiliani, senior portfolio manager at Matco Financial Inc. in Calgary. Illustration by Joel Kimmel THE GLOBE AND MAIL COMMENTS SHARE SAVE FOR LATER Listen to this article Learn more about audio Log in or create a free account to listen to this article. Canadian small-caps have been on a roll and money manager Anil Tahiliani sees more gains to come for investors who choose the right companies. “It’s a hidden gem in terms of opportunities,” says the senior portfolio manager at Matco Financial Inc. in Calgary, who oversees about $320-million of his firm’s $860-million in assets. Because most investors focus on large-cap stocks, Mr. Tahiliani says small-cap valuations are often cheaper than large-caps and can have higher earnings growth rates. He also says there’s a misperception that small-caps are higher-risk. “In Canada, we’re fortunate that we have a lot of great small- to mid-cap companies that are making money and are underleveraged,” Mr. Tahiliani says. His Matco Opportunities Fund, Series F, which includes about 30 to 35 small- and mid-cap growth companies, is up 7.5 per cent so far this year and has returned 23.5 per cent over the past year. Its three- and five-year annualized returns were 30.4 per cent and 15.8 per cent, respectively. Since inception in March, 2010, the fund has had average annualized returns of 10.3 per cent. The performance is based on total returns, net of fees, as of Aug. 31. Mr. Tahiliani says he’s steered clear of sectors such as steel, aluminum, lumber, autos and dairy since Donald Trump was re-elected, given the trade risk. The Globe spokewith Mr. Tahiliani recently about what he’s been buying and selling: Name three stocks you bought recently. Kits Eyecare Ltd. KITS-T -1.39% decrease , the Vancouver-based glasses and contact lens company, is a stock we’ve owned for about three years and bought more of in November of last year on a pullback. KITS EYECARE LTD 14.94-0.91 (-5.74%) PAST YEAR SEPT. 11, 2025 15.85 SEPT. 10, 2026 14.94 SOURCE: BARCHART The company is executing very well. It has built a strong technology platform to gain a larger share of the U.S. market, which now accounts for about two-thirds of its business. It has also announced direct-billing deals with insurance companies in the Canadian market, making it easier…